(a) Modeling and Offset Exemptions
Upon approval by the Executive Officer or designee, an exemption from the modeling requirement of Rule 1303 (b)(1)
and the offset requirement of Rule 1303 (b)(2) shall be allowed, for the following sources.

Replacements
The source is replacing a functionally identical source or is a functionally identical modification to a source
and there is no increase in maximum rating, and the potential to emit of any air contaminant will not be greater
from the new source than from the replaced source, when the replaced source was operated at the same conditions
and as if current BACT were applied.

Electric Utility Steam Boiler Replacement
The source is replacement of electric utility steam boiler(s) with combined cycle gas turbine(s), intercooled,
chemically-recuperated gas turbines, other advanced gas turbine(s); solar, geothermal, or wind energy or other
equipment, to the extent that such equipment will allow compliance with Rule 1135 or Regulation XX rules. The new
equipment must have a maximum electrical power rating (in megawatts) that does not allow basinwide electricity
generating capacity on a per-utility basis to increase. If there is an increase in basin-wide capacity, only the
increased capacity must be offset.

Abrasive Blasting Equipment
The source is portable abrasive blasting equipment complying with all state laws.

Emergency Equipment
The source is exclusively used as emergency standby equipment for nonutility electrical power generation or any
other emergency equipment as approved by the Executive Officer or designee, provided the source does not operate
more than 200 hours per year as evidenced by an engine-hour meter or equivalent method.

Air Pollution Control Strategies
The source is subjected to a modification or process change solely to reduce the issuance of air contaminants.
This exemption shall not apply to landfill gas control operations or to any modification or process change made
for the purpose of achieving regulatory compliance.

Emergencies
The source is exclusively used in emergency operations, such as emergency soil decontamination or excavation, performed
by, under the jurisdiction of, or pursuant to the requirements of, an authorized health officer, agricultural commissioner,
fire protection officer, or other authorized agency officer. A person shall report any emergency within one hour
of such emergency to the District or within one hour of the time said person knew or reasonably should have known
of its occurrence. A specific time limit for each operation will be imposed.

Portable Equipment
The source is periodically relocated, and is not located more than twelve consecutive months at any one facility
in the District. The residency time of twelve consecutive months shall commence when the equipment is brought into
the facility and placed into operation. This paragraph does not apply to portable internal combustion engines.

Portable Internal Combustion Engines
The source is periodically relocated, and is not located more than twelve consecutive months at any one facility
in the District, provided that the provisions of subparagraphs (A) through (C) are met. For the purpose of this
paragraph, the residency time of twelve months shall commence either when an engine is brought into the facility
and placed into operation or removed from storage and placed into operation. The equipment owner or operator shall
designate dedicated storage areas within the facility and demonstrate compliance with the residency time requirement
by keeping records that show the equipment location and operation history. Such records shall be kept on site for
at least two years and made available to the Executive Officer upon request.

(A) Emissions from the engine, by itself, do not cause an exceedance of any ambient air quality standard;

(B) Emissions from the engine do not exceed the following limits:
Volatile Organic Compounds (VOC) 55 pounds per day
Nitrogen Oxides (NOx) 55 pounds per day
Sulfur Oxides (SOx) 150 pounds per day
Particulate Matter (PM10) 150 pounds per day
Carbon Monoxide (CO) 550 pounds per day

(C) For an engine located in the SEDAB the following limits shall apply:
Volatile Organic Compounds (VOC) 75 pounds per day
Nitrogen Oxides (NOx) 100 pounds per day
Sulfur Oxides (SOx) 150 pounds per day
Particulate Matter (PM10) 150 pounds per day
Carbon Monoxide (CO) 550 pounds per day

(b) Intra-Facility Portable Equipment

Upon approval by the Executive Officer or designee, using the criteria set forth below, internal combustion
engines and gas turbines which must be periodically moved within a facility because of the nature of their operation
shall be exempt from the allowable change in air quality concentration requirements as stated
in Rule 1303 paragraph (b)(1), provided that all of the following conditions are met:

(A) The engine or turbine is used:

(i) to remediate soil or groundwater contamination as required by federal, state, or local law or by a judicial
or administrative order; or

(ii) for flight-line operations.

(B) The engine or turbine is not periodically moved solely for the purpose of qualifying for this exemption.

(C) Emissions from the engine, by itself, do not cause an exceedance of any ambient air quality standard.

(D) Emissions from the engine do not exceed the following limits:
Volatile Organic Compounds(VOC) 55 pounds per day
Nitrogen Oxides (NOx) 55 pounds per day
Sulfur Oxides (SOx) 150 pounds per day
Particulate Matter (PM10) 150 pounds per day
Carbon Monoxide (CO) 550 pounds per day

(E) For an engine located in the SEDAB the following limits shall apply:
Volatile Organic Compounds (VOC) 75 pounds per day
Nitrogen Oxides (NOx) 100 pounds per day
Sulfur Oxides (SOx) 150 pounds per day
Particulate Matter (PM10) 150 pounds per day
Carbon Monoxide (CO) 550 pounds per day

For the purpose of clause (b)(1)(A)(ii), flight-line operations mean operations for the ground support of military
and commercial aircraft, and includes, but is not limited to, the operation of power-generating internal combustion
engines and gas turbines used to support aircraft systems or start up aircraft power plants.

(c) Offset Exemptions
Upon approval by the Executive Officer or designee, an exemption from the offset requirement of Rule 1303(b)(2)
shall be allowed, for the following sources.

Relocations
The source is a relocation of an existing source within the District, under the same operator and ownership, and
provided that the potential to emit of any air contaminant will not be greater at the new location than at the
previous location when the source is operated at the same conditions and as if current BACT were applied. The relocation
shall also meet either the location requirements specified in Rule 1303(b)(3), or the applicant must demonstrate
to the Executive Officer or designee a net air quality benefit in the area to which the facility will locate.

In addition, the potential to emit of the combined facility for any air contaminant after the relocation shall
be less than the amounts in Table A of Rule 1304 (d) whenever either the relocating facility or existing facility
received the facility offset exemption pursuant to Rule 1304(d).

Concurrent Facility Modification
The source is part of a concurrent facility modification with an emission reductions occurring
after the submittal of an application for a permit to construct a new or modified source, but before the start
of operation of the source, provided that it results in a net emission decrease, as determined by Rule 1306, and
that the same emission reductions are not:

(A) required by a Control Measure of the AQMP which has been assigned a target implementation date; or

(B) required by a proposed District rule for which the first public workshop to consider such a rule has been
conducted. This exclusion shall remain in effect for 12 months from the date of the workshop, or until the Executive
Officer or designee determines that the proposed rule is abandoned; or

(C) required by an adopted federal, State, or District rule, regulation or statute; or

(D) from a category or class of equipment included in a demonstration program required by a District rule or
regulation.

Resource Recovery and Energy Conservation Projects
The source is a cogeneration technology project, resource recovery project or qualifying facility, as defined in
Health and Safety Code Sections 39019.5, 39019.6, 39047.5 and 39050.5, to the extent required by state law, including
Health and Safety Code Sections 42314, 42314.1, 42314.5, 41605, and 41605.5. In no case shall these sections provide
an exemption from federal law.

Regulatory Compliance
The source is installed or modified solely to comply with District, state, or federal air pollution control laws,
rules, regulations or orders, as approved by the Executive Officer or designee, and provided there is no increase
in maximum rating.

Regulatory Compliance for Essential Public Services
The source is installed or modified at an Essential Public Service solely to comply with District, state, or federal
pollution control laws, rules, regulations or orders, and verification of such is provided to the Executive Officer
or designee; and sufficient offsets are not available in the Priority Reserve.

Replacement of Ozone Depleting Compounds (ODCs)
The source is installed or modified exclusively for the replacement of ODCs, provided the replacement is performed
in accordance with the District's ODC Replacement Guidelines. The Executive Officer or designee shall publish and
update, as required, such guidelines indicating the administrative procedures and requirements for the replacement
of ODCs. The ODC Replacement Guidelines shall ensure to the extent possible that:

(A) the replacements minimize emission increases of VOC, or optimize such emission increases if there is a potential
conflict with the requirements of subparagraphs (B), (C) or (D);

(B) the replacements are not toxic, as determined and published by the California Air Resources Board (ARB)
or the federal EPA, unless no other alternatives are available;

(C) the replacements do not increase the emissions of other criteria pollutants or global warming compounds;
and

(D) there are no adverse or irreversible water quality impacts through the use of such replacements.

(A) Any new facility that has a potential to emit less than the amounts in Table A shall be exempt from Rule
1303 (b)(2).

(B) Any new facility that has a potential to emit equal to or more than the amounts in Table A shall offset
the total amount of emission increase pursuant to Rule 1303 (b)(2).

Modified Facility

(A) Any modified facility that has a post-modification potential to emit less than the amounts in Table A shall
be exempt from Rule 1303 (b)(2).

(B) Any modified facility that has a post-modification potential to emit equal to or more than the amounts in
Table A shall be required to obtain offsets for the corresponding emissions increase, or the amount in excess of
Table A figuresif the pre-modification potential to emit was less than the amounts in Table A in accordance with
Rule 1303 (b)(2).

TABLE A

Pollutant

Emissions in
Tons per Year

Volatile Organic Compounds (VOC)

4

Nitrogen Oxides (NOx)

4

Sulfur Oxides (SOx)

4

Particulate Matter (PM10)

4

Carbon Monoxide (CO)

29

Determination of emissions pursuant to Table A shall include emissions from permitted equipment excluding Rule
219 equipment not subject to NSR and shall also include emissions from all registered equipment except equipment
registered pursuant to Rule 2100.

Two-Year Limit on New Facility Exemption
Any new facility with accumulated emission increases in excess of the amounts in Table A due to permit actions
within any two-year period after the date of adoption of this rule shall offset the total emission increases during
such period to zero.